question
A night security officer at a bank has a relatively high wage. Which of the following would make the wage increase?
answer
d. the job has an increased risk of physical injury
question
Which of the following is true if a firm increases its level of output by one unit and profits increase?
answer
b. marginal revenue is greater than marginal cost
question
Economic mobility studies show that income of grandparents and grandchildren are
answer
c. only slightly positively correlated
question
In 2017, 20 percent of families had a household income of $33,551 or less. Based on data from 2017, what percent of income was controlled by families with income below $33,551?
answer
b. 3.8%
question
Which legislation was passed by Congress in 1914 to strengthen the government's powers and authorize private lawsuits?
answer
Clayton act
question
Which of the following statements about antitrust laws is true?
answer
Antitrust laws can reduce social welfare if they prevent mergers that would lower costs through more efficient joint production.
question
One explanation for why the market long-run supply curve slopes upward is because
answer
d. the inputs in production are only available in limited quantities.
question
An event that changes the supply of labor in a country alters the earnings of land and capital in that country.
answer
true
question
Refer to the table. If the price in this competitive market is $2.00, what is the profit-maximizing level of output for this firm?
answer
c. 6 units
question
Which of the following statements about price discrimination is not true?
answer
Price discrimination does not require the firm to separate customers according to their willingness to pay.
question
Which of the following correctly describes when a firm in a competitive market should shut down in the short run?
answer
d. price is less than AVC
question
If the government calculated household tax liability by finding 25 percent of income and subtracting $10,000, What amount of taxes would a household owe if they earned $48,000 in income?
answer
$2000 (48,000 x 0.25 -(10,000))
question
Which of the following is not an example of an oligopoly?
answer
price taker
question
Which of the following describes an imperfectly competitive firm?
answer
a. some price setting ability
question
Which of the following is considered a likely result from advertising?
answer
d. Signaling theory suggests that expensive testimonials from celebrities indicate a higher quality product.
question
Which of the following is not a reason why workers may earn above-equilibrium wages?
answer
d. labor-market discrimination
question
Which of the following is true for a firm in a monopolistically competitive market?
answer
d. The firm creates the same deadweight loss as a monopoly.
question
The human-capital theory of education suggests that workers with more education are more productive.
answer
true
question
If the government calculated household tax liability by finding 20 percent of income and subtracting $6,000. What amount of taxes would a household owe if they earned $36,000 in income?
answer
$1200
question
Which of the following is not a characteristic of a monopoly?
answer
b. one buyer
question
The figure shows the labor market for apple pickers. The curve labeled Supply is the labor supply curve, and the curve labeled Demand is the labor demand curve. On the horizontal axis, L1 represents the initial equilibrium quantity of labor in the market. On the vertical axis, W1 represents the initial equilibrium wage
answer
a. the labor demand curve will shift right
question
Reece has decided to start his own brewery. To purchase the necessary equipment, Reece withdrew $20,000 from his savings account, which was earning 3% interest, and borrowed an additional $50,000 from the bank at an interest rate of 5%. What is Reece's annual opportunity cost of the financial capital that has been invested in the business?
answer
d. $3100
question
For a worker, the opportunity cost of an hour of leisure increases by $13 when his or her wage rate
answer
c. increases by $13 per hour
question
Suppose the equilibrium wage increases by $2 hour. How does this affect the value of the marginal product of labor?
answer
b. increases by exactly $2
question
Refer to the Figure. The firm experiences constant returns to scale at which output levels?
answer
b. output levels between Q2 and Q4
question
Refer to the table. The marginal cost of the fourth unit of output is
answer
$38
question
GianCarlo used to work as an architect for $50,000 per year but quit in order to start his own photography business. To invest in his photography business, he withdrew $20,000 from his savings, which paid 2% interest, and borrowed $40,000 from his brother, whom he pays 3% interest per year. Last year GianCarlo paid $10,000 for supplies and had revenues of $70,000. GianCarlo asked William the accountant and Henry the economist to calculate his photography business's annual profit.
answer
William says his profit is $58,800 (70,000 - 11,200), and Henry says his profit is $8,400 (70,000 - 61,600).
question
Which of the following explains differences in wages as a result of some jobs being inherently more risky than others?
answer
c.Compensating differentials.
question
Refer to the Figure. To maximize total surplus, a benevolent social planner would choose _____ units of output and a price of ____ per unit.
answer
150 (where MC and demand intersect); $15 (demand curve and MC)
question
All of the following concepts rely on the assumption of equilibrium in the labor market except
answer
c.the theory of efficiency wages
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